UAE Likely to Pledge $75 bn to India on Crown Prince's Visit

[Mo12]

http://www.news18.com/news/india/ua...-to-india-on-crown-princes-visit-1340134.html

New Delhi: The UAE is likely to pledge an investment of $75 billion to India during the visit of Crown Prince Sheikh Mohammed Bin Zayyed Al Nahyan on the occasion of Republic Day.

The Crown Prince, who is coming to India with a large ministerial and business delegation, will be the chief guest at the 68th Republic Day. He will be holding delegation-level talks with Prime Minister Narendra Modi, besides calling on the President and the Vice President.


Furthering trade and investments will be on top of the agenda when the two leaders meet. India and UAE will sign a comprehensive strategic partnership agreement. Apart from a MoU on investments into the National Investment Infrastructure fund, the two sides will also sign agreements on defence and maritime transport. India is looking to increase cruise tourism from the Western Coast of India to the UAE.

MEA officials confirmed that UAE is looking for a defence partner and during the visit India will offer to see arms, armoured vehicles and joint production of aircraft. MEA Secretary Amar Sinha said: “There have also been talks on the sale of Brahmos missiles but India will immediately offer only the equipment for which India holds the IPR rights.” Brahmos is a missile jointly produced by India and Russia.

 

[Nilgiri]

75 billion is a good sized commitment. Most would be energy infra related and sovereign development funds I would think.

India is a sponge and needs even more from around the world. We are still very investment starved.

 

[supun1]

pledging $75 Billion = 20% of UAE GDP.

 

[Nilgiri]

pledging $75 Billion = 20% of UAE GDP.

Of course it will not be within just one year...and it comes from UAE's wealth (accumulated "GDP"s over history), not GDP (yearly snapshot of increase of this wealth).

 

[Shotgunner51]

pledging $75 Billion = 20% of UAE GDP.

Yes, if you mean GDP per annum (12 months) to be exact. But NO, GDP, which is just a compiled stats, a rough estimate of aggregate size of economic activities in confined territory, is irrelevant (not directly related to) when it comes to financial capability to invest. An economy can run in surplus or deficit, current account surpluses will add to (deficits will deduct from) net foreign assets, which is the primary measure of how much a nation can invest overseas.

UAE has recorded current account surpluses for decades, now has huge net foreign assets (the term is net IIP, see below news), among the top 15 largest in the world. Yes, they have a lot to invest.

Like counterparts say Qatar, Kuwait, UAE maintains very low reserve assets (about $80 billion) at central bank, majority of their foreign assets are managed under several sovereign wealth funds (SWF), largest one is ADIA (Abu Dhabi Investment Authority, $792 billion), all SWF combined $1,267.5 billion. The $75 billion investment to India will come from their SWF, forming 6% of their portfolio.

http://khaleejtimes.com/business/economy/uaes-net-investment-outstrips-external-debt-moodys
https://defence.pk/threads/new-pivo...-largest-sovereign-wealth-funds.455072/page-4